According to the Zhixin Finance and Economics APP, Jiumaojiu (09922) is currently down nearly 4%. As of press time, it is down 3.95%, to HKD 4.13, with a turnover of HKD 41,591,600.

On the news side, on May 15th, Xiabu Xiabu announced an overall reduction in combo prices; recently, Songhuo hotpot also issued an announcement, reducing the pot bottom price to a starting price of RMB 8.8, and the meat dish starting at RMB 9.9. Huafu Securities pointed out that the collective price reduction in the hot pot industry, and large-scale price wars, is due to the fact that consumers have increasingly paid attention to the price-performance ratio of dining consumption in recent years.

It is reported that Jiumaojiu previously released its Q1 2024 company business data. The daily sales of its stores for Tai Er, Song Huo Guo, and Jiu Mao Jiu were -13.9%/-34.8%/-4.1% YoY, respectively. Sinolink Securities pointed out that there is great pressure in the industry and the same period base is high. Improving the cost performance of its products could lead to a decline in the performance of its brands in the same stores. Huaxing Securities stated that the transformation of its Song brand will test the execution and multi-brand operation capabilities of Jiu Mao Jiu. If it is effective, the investment logic of "the replicability of Tai Er's excellent business model" still stands. However, if the progress is ineffective, it may lead to a lack of long-term development logic and the valuation may be further adjusted. The future development of the Song brand is worth observing.